Irish SMEs still more reliant on banks than European counterparts
on 07/10/2013 12:16:04
However, the share of firms using bank borrowing to finance either capital or working investment fell by around 50% between 2005 and 2012.
The Central Bank says policy must aim to stimulate the flow of credit and create well-developed markets for a range of alternative financing sources to complement the role of banks in financing SMEs in Ireland.
The research notes that, while a move away from reliance on bank funding is desirable, it is important that policy makers mitigate the risk that firms are turning to other, costly, forms of financing due to an inability to access bank credit.